Traditional passwords present several challenges, including being a significant source of risk for organizations. They are costly to manage, with many large U.S.-based organizations spending over $1 million annually on password-related support. Additionally, passwords lead to user frustration, as evidenced by a survey where 62% of IT security leaders reported extreme frustration due to password lockouts. Furthermore, passwords are easily compromised, with over 80% of breaches involving web applications attributed to stolen credentials.

Passwordless authentication is a method that verifies a user's identity without relying on passwords. Instead, it utilizes biometrics, security keys, or mobile devices for authentication. This approach aims to provide a seamless login experience while enhancing security by reducing the risks associated with password theft and user fatigue. By eliminating the need for passwords, organizations can improve user productivity and reduce administrative burdens related to password management.

To transition to a passwordless future, enterprises should adopt a phased approach. This includes identifying specific use cases for passwordless authentication, streamlining authentication workflows, and integrating multi-factor authentication (MFA) to enhance security. Organizations should also focus on reducing reliance on passwords by implementing solutions that support both cloud and on-premises applications, while continuously optimizing their passwordless toolset to cover all access scenarios.